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Steve has analyzed two mutually exclusive projects of similar size and has complied the following information based on his analysis. Both projects have 4-year lives.

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Steve has analyzed two mutually exclusive projects of similar size and has complied the following information based on his analysis. Both projects have 4-year lives. Project A Project B Net Present Value $13,975.11 $12,100.24 3.48 years 3.78 years Payback Period Required Return 14.50 % 13.50 % Steve has been asked for his best recommendation given this information. His recommendation should be to accept: both projects. Project A because it has the shortest payback O Project B and reject Project A based on their required return. Project A and reject Project B based on their net present values. O neither project

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